I didn’t check all the examples Eric linked, but I suspect the vast majority of the retailers really aren’t accepting BTC, but simply use a payment processor that accepts BTC (and retailer receives payment in local currency). Which is functionally equivalent to what you suggested.
-Al
May I up this topic by introducing our company since it sticks to the original post:
BTC Wine is the first online fine wine merchant to accept Bitcoin and Bitcoin Cash as payment.
BTC Wine, based in Bordeaux, France, proposes a range of the most prestigious wines in the world by the case.
Our fine wines are packed in original wooden cases and shipped throughout the world.
The mother Company, LASSERRE & PAPILLON, was the first Bordeaux Negociant (B2B) to accept Bitcoin as payment.
BTC Wine gives individual bitcoin holders (B2C), the possibility to spend / invest their Bitcoins in a tangible asset.
BTC stands for:
-By the case
-Business to consumer
-Bitcoin
And so the plot thickens.
What is the true relationship between the FRP and the IMW?
Enquiring minds wanna know…
Not for me. Too much uncertainty.
Taking payment in Bitcoin is one thing.
But if it was being treated as a true currency (as opposed to a speculative investment, evasion scheme, or novelty) someone would price their wines in bitcoin. Not holding breath.
You guys are missing the point.
When non-oxidized non-corked non-heat-damaged Keller G-Max surges to $25 Trillion per bottle, at the same time that the world’s currencies are deflating to one-tenth of their previous valuations, you will finally understand why the FRP infiltrated & seized control of the IMW way back in the 1960s, as part of the broader MK-ULTRA initiative.
It’s the Great Convergence.
Keller G-Max is the new currency.
And the Fed was there first.
Eric, a currency gains legal status only if one can pay taxes through it. That is the government accepts “the cryptocurrency” as means for citizens to pay dues. As Al pointed out, retailers or any other merchants will simply convert the the bitcoin to local currency. The brokers who are offering to transact via bitcoin also settle to local currency, after overlaying transaction fees.
The purpose of the exercise is to value the asset (wines in storage) against a benchmark (US dollars or Euros).
Bitcoin is not a benchmark. It is just a highly speculative tool. There is no value generation, only a transfer of wealth from one person to another.
One can make the case for valuing the asset against precious metals (far less volatile and have historically been a medium of exchange) or other financial assets (S&P 500).
These in particular are really cool. Looking forward to them Eric!
Uhh, no need to look forward to them. We shipped these features last December! Currency Support - CellarTracker Support
D’oh! I wondered. It felt like I’d been using them these last few months. Hah.
I dont use bitcoin but I do like the average price feature. Which makes me wonder, if someone puts in EUR as their currency for a bottle when its 1.3 USD to EUR, and a year later it drops to 1.1 USD to 1 EUR, that makes the same bottle look more expensive in USD terms. Is the average price going to be converted to USD as of the date of entry or will it “float” with current FX rates?
The other interesting thing (which is off topic now) is whether most folks include sales tax on their “price paid”. VAT can be in excess of 25% in Europe, that can skew prices too.
(sorry for going off topic!)
If one person buys a bottle ex-domaine for €10 and someone from a high imported alcohol tax country, say Brazil, pays the equivalent of four times that price, what is the average price? Does this figure mean anything in the real world for, say, someone in the States where, for example, the wine usually goes for the equivalent of €13.
The average price where you are buying is relevant, but how about tax? Duty (in countries like the UK)? Shipping costs?
Thanks for bumping this post. The crypto market has sure evolved since this post originated. It’s not an if, but a when. I’m only speaking about Bitcoin, which in my opinion is the millennial form of digit gold or store of value. It’s not a replacement of the dollar IMO. Within the next five years, I’m confident that almost every retailer will have the ability to accept BTC. Although, until the conversion process is implemented within major merchant processors (ApplePay, Stripe, Square, etc) the wine community will be hesitant. On that point, I’m quite surprised that no one has not jumped on-board yet. The PR and marketing potential would be HUGE (on all forms of media, not just wine) and I assume there would too be an increase in sales. I’m throwing it out there, but an ideal brand that blends well to the underdog would be Realm. I have a feeling some of their constituents would be adopters, including myself.
The price floats with exchange rates. Some people enter tax and shipping. Many do not. It is just an average. We also integrate worldwide auction averages.
This sort of stuff actually is discussed in our FAQ’s:
It is just an average. People seem to be looking for some level or truth or higher meaning that doesn’t exist. It is tool to help you value your collection and determine what you should insure it for.
I still find this confusing.
The US$ is backed by the full faith and credit of the United States government.
OK, faith in the US government varies, but there is apparently an international consensus that there is real value to the US$, and I can buy things with it almost anywhere.
The Venezuelan Bolivar is backed by the full faith and credit of the Venezuelan government.
There is apparently an international consensus that it’s worthless, and nobody can buy anything with it, anywhere (including Venezuela).
Bitcoin is back by the full faith and credit of???
There is no international consensus.
There seems to be some consensus that Bitcoin is used to facilitate criminal activity far more often than national currencies.
A relatively large number of people (maybe 1/10th of 1% of humankind?) are certain that the emperor is sumptuously attired.
I see little if any downside on Eric including Bitcoin in his list of supported currencies, but I also see no upside whatsoever.
Dan Kravitz
Ouch!
What is gold backed by? Nothing, there is just a demand with relatively limited supply. Bitcoin is in essence thay digital form of gold. In modern times, such as now, the ability to store value, quickly move it, and have no direct correlation to markets, is why it has value. To you’re point about criminal activity, I would lean toward substantially more criminal activity with cash and in time, paper fiat will disappear. On a blockhain, every transaction can be verified and therefore in time will be the most transparent tool for all data and transactions.
I think it’s difficult to buy wine with gold. It’s a commodity, not a currency, and its value is not based on the ability to buy things with it.
-Al
I agree with you that gold is not a currency, but a store of value, and buying wine with gold (in more stable economies) is uncommon. However, I would bet many wineries right now in Mendoza would be open for accepting gold/silver for their wine. However, since I’m in CA, moving my gold to the Southern Hemisphere is not really feasible. Unlike gold, bitcoin is digital and therefore not limited to the properties of gold- heavy, not easily divisible or transportable. Bitcoin can move instantaneously and is fractional. When the US market goes through the next recession, bitcoin may an alternative hedge in addition to gold. However, bitcoin can be used for goods and services 100x easier since most consumers shop online these days. In my opinion, it’s not a question of if, but when.